Wing Lung shares gain on bidding news
Shares of Wing Lung Bank rose as much as 3.48 per cent yesterday, bucking the decline in the broad market on news that China Merchants Bank was the preferred bidder for its controlling stake.
Wing Lung reached an intraday high of HK$154.50 before closing at HK$152.30, up 2 per cent from the previous close of HK$149.30.
In contrast, shares of China Merchants fell 1.52 per cent to HK$29.10.
'No doubt shares of Wing Lung benefited from the news about the bid, but China Merchants' share performance was in line with the market,' said Ivan Li, an analyst at Kim Eng Securities.
The Hang Seng Index fell 1.31 per cent, to 24,714.07 yesterday.
Mr Li said China Merchants could benefit from the acquisition more than other bidders, which included Industrial and Commercial Bank of China and Australia and New Zealand Banking Group.
'China Merchants with only one branch in Hong Kong could make use of Wing Lung's branch network to expand its business - particularly wealth management,' Mr Li said.
